Here’s how analysts read the market pulse:
Rohit Singre of LKP Securities said Nifty50 has formed a good base in the 15,750-15,650 range. “If the index holds on to the range, one can expect a bullish momentum to emerge,” he said.
Mazhar Mohammad of Chartviewindia.in said Nifty may see a sharp corrective downswing if it breaches the 15,600 level. “Weakness on Friday can be expected if the index closes below 15,737 level, which may initially lead to the testing of the 50-day simple moving average, whose value is placed around 15,670 level,” he said.
That said, here’s a look at what some of the key indicators are suggesting for Friday’s action:
US stocks climb on strong earnings
The S&P 500 and the Dow indexes scaled record highs on Thursday as a slate of strong corporate earnings reports and data showing a pickup in US economic growth reinforced optimism around a steady post-pandemic recovery. At 9:42 a.m. ET, the Dow Jones Industrial Average was up 0.49 per cent, the S&P 500 was up 0.44 per cent, and the Nasdaq Composite was up 0.36 per cent.
Bumper earnings lift European shares
The pan-European STOXX 600 index climbed 0.45 per cent, having also hit a record high of 464.31 points earlier, and MSCI’s gauge of stocks across the globe jumped 0.92 per cent. UK’s FTSE 100 also ended higher on Thursday, as encouraging earnings and huge dividend payouts from some of the UK’s biggest corporates helped support optimism around faster economic growth.
Tech View: Nifty forms bullish candle
Nifty50 on Thursday formed a small bullish candle on the daily chart. The candle, following Wednesday’s trend reversal Hammer, sending out a positive signal. Analysts are a bit optimistic but believe the 15,820 level may act as the immediate resistance. They see strong support for the index at 15,650, which is around its 50-day simple moving average.
F&O: Easing VIX adds strength
India VIX fell 5.44 per cent from 13.69 to 12.94 level. A decline in the volatility after the roller-coaster ride of the last session has again given a grip to the bulls and now VIX has to cool down below 12-level to be able to offer more comfort. Options data suggested a broader trading range between 15,500 and 16,000 levels.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of
, SBI, JK Paper, Gujarat Mineral Development, Schneider Electric, , Infosys, NIIT, Power Finance, Vardhman Acrylics, Inox Leisure, MindTree, Bata India, Trent, Entertainment Network, GOCL Corporation, S Chand & Company, KIOCL, Metropolis Healthcare, , Kamdhenu, Matrimony.com, Jai Balaji Industries, Technocraft Industries, Bajaj Holdings, Rama Steel Tubes and JSW Holdings.
The MACD is known for signalling trend reversals in traded securities or indices. When the MACD crosses above the signal line, it gives a bullish signal, indicating that the price of the security may see an upward movement and vice versa.
Stocks signalling weakness ahead
The MACD showed bearish signs on the counters of JM Financial, Prism Johnson, Geojit Financial, Raymond, HSIL,
, PNC Infratech, Liberty Shoes, Central Depository, Angel Broking, MCX, Mercator, Indbank Merchant, Manaksia, TCI Express, Steel City Securities, Siyaram Silk, Jindal Poly Films, Tera Software, JBM Auto, Jindal Drilling, IIFL Wealth Management, Foseco India, Gujarat Apollo Industries, Keynote Financial and GKW. A bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Most active stocks in value terms
Tata Steel (Rs 4,313.25 crore), Hindalco (Rs 2,750.14 crore), SAIL (Rs 2,046.29 crore), Tatva Chintan Pharma Chem (Rs 1,811.52 crore), Tata Motors (Rs 1,689.80 crore), Zomato (Rs 1,624.84 crore), SBI (Rs 1,535.66 crore), JSW Steel (Rs 1,378.21 crore), RIL (Rs 1,306.91 crore) and
(Rs 1,065.22 crore) were among the most active stocks on Dalal Street in value terms. Higher activity on a counter in value terms can help identify the counters with highest trading turnovers in the day.
Most active stocks in volume terms
Vodafone Idea (Shares traded: 20.84 crore), SAIL (Shares traded: 14.68 crore), Zomato (Shares traded: 11.80 crore), NALCO (Shares traded: 10.96 crore), YES Bank (Shares traded: 7.45 crore), PNB (Shares traded: 6.39 crore), Hindalco (Shares traded: 6.14 crore), JP Power (Shares traded: 6.13 crore), Tata Motors (Shares traded: 5.77 crore) and Suzlon Energy (Shares traded: 5.70 crore) were among the most traded stocks in the session.
Stocks showing buying interest
ACC, ICICI Bank,
, V Mart Retail, Hindalco, Coforge, NALCO and Balrampur Chini witnessed strong buying interest from market participants as they scaled their fresh 52-week highs, signalling bullish sentiment.
Stocks seeing selling pressure
Alembic Pharma, Madhav Copper and Suryoday Small Finance Bank witnessed strong selling pressure and hit their 52-week lows, signalling bearish sentiment on these counters.
Sentiment meter favours bulls
Overall, the market breadth remained in favour of the bulls. As many as 296 stocks on the BSE500 index settled the day in the green, while 202 settled the day in the red.
Podcast: How should investors play the metals theme?
Metal stocks were back in action today as the BSE sectoral index rose over 5 per cent. How should investors play the metals theme now? Where is Nifty headed now? What are the technical charts suggesting?
